Companies Act 2014 section 1607

Transitional provisions

Section 1607 provides temporary arrangements, available until 6 January 2030, allowing a qualifying EU subsidiary of a non-EU parent company to prepare consolidated sustainability reporting on behalf of all the group's EU subsidiaries.

• Until 6 January 2030, a subsidiary of a non-EU company that is already required to prepare sustainability reports and that generated the highest EU turnover in the group in at least one of the previous five financial years may prepare a consolidated sustainability report covering all of the group's EU subsidiaries subject to sustainability reporting obligations.
• This consolidated report may also include the taxonomy-related disclosures required by Article 8 of EU Regulation 2020/852, covering activities carried out by all of the group's EU subsidiaries that are subject to sustainability reporting requirements under the EU Accounting Directive.
• Where a subsidiary prepares such a consolidated report, it is treated as group-level reporting by a holding company, meaning other EU subsidiaries within the group may qualify for exemptions from individual sustainability reporting obligations.
• Where the consolidated report includes the Article 8 taxonomy disclosures, this satisfies the specific conditions for reporting exemptions set out in sections 1595(1)(c) and 1599(1)(c).